Canada Q3 GDP +2.9% vs +1.5% expected

• Q2 was +3.3% (vs +4.4% expected)
• GDP +0.7% q/q vs +0.8% prior
• Implicit price change -1.4% q/q vs +3.3% prior
• GDP m/m +0.1% vs +0.1% expected
• Prior m/m reading 0.1%
• October advance GDP unchanged
• Inventories +46.8B vs +$47.0B prior
• Nominal GDP -0.7% vs +4.0% q/q prior
• Compensation for employees +1.2% vs +2.0% q/q prior
• Final Q3 domestic demand -0.2% vs +0.6% prior
• Household spending -0.3%
• Full report

This is the fifth consecutive quarterly increase for Canada and a surprise. Growth in exports, non-residential structures, and business investment in inventories were moderated by declines in housing investment and household spending. Inventories are the kicker as they grew at near-record pace with StatsCan citing manufacturing inventories in particularly. Optimistically, that might be rebuilding inventories but it bears close watching with global growth slowing.

The BOC will take some solace in slowing wage growth and they will feel good about slowing the pace of hikes. The market is 74% priced for 25 bps on Dec 7 with the remainder at 50 bps.

CAD CAD The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i The Canadian dollar (CAD) is the official currency of Canada and at the time of writing is the fifth most-held reserve currency in the world behind only the US dollar, euro, Japanese yen, and British pound.The CAD is commonly referred to as the Loonie by forex analysts and traders. At the time of writing, the CAD accounts for 2% of all global currency reserves.Its appeal is strong among central banking authorities given Canada’s economic strength, sovereignty, and historic stability.Originally i Read this Term is near the lows of the day but I wouldn't attribute that to this report.